A major new regional report has warned that boosting agricultural productivity is essential if Latin America and the Caribbean are to strengthen food security, improve rural livelihoods and build more resilient agrifood systems in the face of climate and economic challenges.
The report, Outlook for Agriculture and Rural Development in the Americas 2025–2026, was launched this week by the Economic Commission for Latin America and the Caribbean (ECLAC), the Food and Agriculture Organization of the United Nations (FAO), the Inter-American Institute for Cooperation on Agriculture (IICA), and CAF – Development Bank of Latin America and the Caribbean.
Presented during a virtual event attended by ministers, policymakers and agricultural experts from across the region, the report argues that increasing productivity is no longer optional but a strategic necessity for ensuring long-term food security, economic growth and environmental sustainability.
According to the study, agricultural productivity growth across Latin America and the Caribbean has remained sluggish over the past decade. Total factor productivity increased by only five percent during that period, equivalent to less than one percent annually.
Researchers found that nearly 75 percent of agricultural production growth in the region has been driven by greater use of inputs such as fertilizers and agrochemicals, while only 25 percent has come from improvements in efficiency and innovation.
The report identifies several barriers preventing stronger productivity gains, including limited access to technology, financing constraints, weak governance systems, digital inequalities and shortages of skilled agricultural talent.
Particularly concerning is the situation facing small farmers. The report estimates that approximately 16 million small farms—more than 80 percent of all farms in the region—continue to face serious challenges accessing land, financing, technology and markets. Only 15 percent of small producers have access to formal credit, while just 39 percent of rural households have internet access.
The findings also highlight the connection between productivity and food affordability. The report notes that Latin America and the Caribbean currently has the highest cost of a healthy diet anywhere in the world. In 2024, the average cost was estimated at US$5.16 per person per day, compared with a global average of US$4.46.
As a result, an estimated 28 percent of the region’s population cannot afford a healthy diet. In the Caribbean, the situation is even more severe, with roughly half of the population unable to consistently afford nutritious food.
Officials participating in the launch stressed that improving productivity requires more than simply increasing production. They called for coordinated investments in agricultural research, rural infrastructure, digital technology, climate-smart farming practices, financing and technical support services.
Muhammad Ibrahim of IICA said productivity must become a central public policy objective because it directly affects economic growth, food security and social equity.
Meanwhile, ECLAC Executive Secretary José Manuel Salazar-Xirinachs described agriculture as a potential engine for overcoming the region’s low-growth challenges, provided governments implement deliberate policies focused on innovation, financing and capacity building.
FAO representative Rene Orellana Halkyer highlighted the growing role of precision agriculture, biotechnology and artificial intelligence in transforming food production, while emphasizing the need for stronger collaboration among banks, governments and development institutions to expand access to financing.
The report concludes that future agricultural growth will depend increasingly on innovation and efficiency. Between 2023 and 2032, an estimated 79 percent of global crop production growth is expected to come from productivity improvements, compared with just 15 percent from the expansion of agricultural land.
To address the challenge, the report proposes eight key areas for action, including expanding financing, strengthening technical assistance, promoting digital agriculture, improving resource efficiency, supporting sustainable production systems and increasing regional cooperation.
Officials say the recommendations provide a roadmap for transforming agrifood systems across Latin America and the Caribbean while ensuring that future growth is more resilient, inclusive and sustainable.